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SELECTED INTEREST & EXCHANGE RATES FOR MAJOR COUNTRIES & THE US. WEEKLY SERIES OF CHARTS SOMD OF GOVERNORS OF TME FEDERAL RESERVE SYSTEM TABLE OF CONTENTS PART I. EXCHANGE RATES AND GOLD PRICES Chart 1A and 6 - Spot Exchange Rates, Major Currencies against U.S. Dollar Chart 2A and B - 3-Month Forward Exchange Rates, Major Currencies against U.S. Dollar Chart 3A and 8 - 3-Month Forward Exchange Rates, Major Currencies against U.K. Pound Chart 4 - Gold Price in London PART II. SHORT-TERM INTEREST RATES Chart 5 - Call Money Rates Chart 6A and B - London: Euro-$ Deposit Rates Chart 7A and B - New York - London: Yields on U.S. Dollar Funds Chart 8A and B - London: Covered Yields on U.S. Dollar Funds Chart 9A and B - Interest Arbitrage: United States-United Kingdom Chart 10A and B - Interest Arbitrage: U.S.-Germany and U.S.-Switzerland Chart 11 - Interest Aibitrage: United States-Canada Chart 12 A and B - Selected Short-term Interest Rates PART III. LONG-TERM INTEREST RATES AND STOCK INDICES Chart 13 Chart 14 - Long-Term Bond Yields - Industrial Stock Indices PART IV. SELECTED CENTRAL BANK DISCOUNT RATES AND LATEST FIGURES PLOTTED ON THE CHARTS NOTE: This series is a continuation of the CAPITAL MARKETS DEVELOPMENTS ABROAD, which was published under that title through December 31,1%8. The changes in the format and order of the charts are explained in the Supplement to the series, which accompanied issue dated January 1, 1969. All series and their sources are fully described in a Supplement dated January 1, 1972. \ t> SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR Weekly averages Per cent *2 GERMAN MARK KU.K. POUND I Central ' rate du.s. f/ I I 1 I I 1 DUTCH GUILDER I I 1 I I I I I 1 1 1 1 1 1 1 1 1 f \ !^ I //FRENCH FRANC Central rate against US / / JAPANESE YEN / / / i i 1 M i i 1 i i J _i _i i i 1 i i 1 J 1972 * Pound floated June 23, 1972. 1973 i i 1 i i 8< l< | Chert IB SPOT EXCHANGE RATE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent / BELGIAN FRANC us ITAUAN ••low M J 0 S M I I07S 1972 0 6 jk Ratio scale, U S cento CANADIAN DOLLAR / A J \ ^ r fT V S V I I I I I 1 1 1 1 1 1 M J S 1970 D I I 1 I I 1 I I I M j S 1971 I I D M M 1 1 1 1 1 1 1 j ^ 1972 M O \ Chart 1C SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR GERMANY NETHERLANDS FRANCE JAPAN Par U.S. MAY JUNE JULY SEPT. AUG. 1971 * Financial franc OCT MOV DEC. Chart ID SPOT EXCHANGE RATES - MAJOR CURRENCIES AGAINST U S. DOLLAR 7# 5 4 3 2 I \ 0 A A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages Per cent per annum CANADIAN DOLLAR U K. POUND DISCOUNT- GERMAN MARK DISCOUNT PREMIUM I DUTCH GUILDER DISCOUNT — I I i I i i I I I I I I I I I I I I I I I ' I I M J S D 1969 M J S 1970 * Canadian Dollar Rate not supported by Bank of Canada No quotation. D M J S 1971 D I I I I I I I I I I I M J S 1972 D 6 Chert 28 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST US. DOLLAR Weekly averages 1 1 | 1 1 | Per cent per anevr M | M U.11 " s. 1 1 1 I I 1" | M | I I | M 4 «•»« jf M" V - V Y v V ,1 1 M M V ^ 1 M J r e EMCH F R A N C 1 ?'=!"?T i S D 1970 M 1 I I J 1 1 1 1 1 I S D I M 1971 18 1 i i I i i I i i l i i M J S D 1969 * Devaluation of the French franc from 4.94 to 5.55 for $1.00. * * No quotation 1 I J I 1 I S 1972 12 24 I I 1 I D I (fp W Chart 3A 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U K. POUND Friday figures Per cent per annum U.S. DOLLAR DISCOUNT Nc Quotation Chart 38 3-MONTH FORWARD EXCHANGE - MAJOR CURRENCIES AGAINST U.K. POUND Friday figures Per cent per annum FRANC FRENCH FRANC S D 1969 S 1970 * Devaluation of the French franc from 4 94 to 5 55 for $1 00 D J 1971 s D J 1972 S D p. GOLD PRICE IN LONDON, 12.5 Kg BARS Week's average of afternoon fixings U S. dollar equivalent per fine ounce 80 70 60 50 40 i i I i i I i i I i ITTTI m j s d m 1969 i i 1i i 1 ii j s d 1970 1 ii m I i i I i i1 i i I i i I i i I i i 1 i i j s d m j s d 1971 1972 CHART 5A CALL MONEY RATES DOLLAR FUNDS Weekly averages Per cent per annum 16 l 1 EURO DOLLAR DEPOSITS CALL OVERSIlGHT l j - . 12 1 I : iW 3£7 1 11 j V FEDERAL FUNDS 1 - - EURO DOLLAR OVER FEDERAL FUNDS v V X f U , / f VvV \j*\ y/*\N 1 11 1 11 1111 1 . - i Vwv' J rWv i i 1 i i 1 i i 1 i i , i 111 111 i 1 i i i vv u w / 111111 M 111 EURO-CURRENCIES Weekly averages M J 1969 1 May 10, 1971 - Changed to Overnight Euro $ Deposits Per cent per annum 12 \ E ^ CALL MONEY RATES SELECTED FOREIGN AND EEC CURRENCIES rriaay figures Per cent per FRANCE NETHERLANDS JAPAN GERMANY UJC. M S D 1969 M J 1970 s D M J S D 1971 France, Day to day Money, Netherlands, Call Money, weekly average. Japan, Unconditional Money; Canada, Day-to-day Loans, weekly average; Germany. Call Money;U K , 2-day Local Authority Deposits M J 1972 S D Chart 6A LONDON: EURO DOLLAR DEPOSIT RATES Friday figures I I I 1II M Per cent per annum I II J I II ll S D I 1II I II I I I I I I I I I I I I I I I I I I I I I I I I I I I I M 1969 J S 1970 *«lay 12/71—changed to Overnight Euro-Dollar Deposits * * July-1-changed to 7-Day Euro-Dotlar D M J S 1971 D M J S 1972 O 2 vo^ LONDON: EURO DOLLAR DEPOSIT RATES Friday figures kh / / Per cent per annum 12 / 1 \ A, v v 10 h ih-l 1 kfv v\ I 1 i i 1M 1i i 1 i I j s 1969 i i i i i i i i i i i 1970 I l 11I 1111l I J s 1971 r V 1 11 111 111 11 J s 1972 ••ip Chart 7A NEW YORK-LONDON: YIELDS ON U S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES—SECONDARY MARKET Per cent per annum Wednesday figures 1 ' fA/l J ! fj - \ EURO-DOLLAR DEPOSIT - A VXA - L i / i i W - us. a•RTIFtCATE OF DEPOSIT 1 1 1 1 1 1 I I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 I I 1 I I • V J 1 1 1 1 1 1 1 1 1 1 1 I I FAVOR EURODOLLAR DIFFERENTIAL • A/u r i AA - w v x / 1r A / ^ - ElIRO-OOLLAR OVER U.S. CERTIFICATE OF DEPOSIT 1 1 1 1 1 1 1 i M J S 1 l.l_. 1 1 1 1 1 1 M D 1969 M J 1970 S 1 I I D l M l 1 I J l 1 l 1 1 I S D 1971 I 1 1 1 1 I M J 1 1 1 1 1 t S O 1972 1 6* Chart 7B NEW YORK-LONDON: COST OF U.S. DOLLAR FUNDS 3-MONTH DOLLAR DEPOSIT RATES-PRIMARY MARKET Wednesday figures Per cant per annum EURO-DOLLAR DEPOSIT ADJUSTED EURO-DOLLAR DEPOSIT US. CERTIFICATE OF DEPOSIT ADJUSTED A •• 1 p ~ M I k f t . iI M i W ADJUSTED* i i ! * i i 1 i J i 1 i S i 1 1 1 1 1 1 1 1 .1 .1 - 1 D 1969 M J 1970 •Adjusted for Reserve Requirement • • Adjusted for 10% Marginal Reserve Requirement * * * A d j u s t e d for 20% Marginal Reserve Requirement S D A x t V \ J V\ j\ EURO-DOLLAR OVER U S. CERTIFICATE OF DEPOSIT VV W 1 VV - i i i M i i i i J 1971 i i S i O i i - 1 1 1 1 1 1 1 J J 1972 J J . Chert 8A LONDON: COVERED YIELDS ON US. DOLLAR FUNDS HIRE PURCHASE AND EURODOLLAR RATES Friday figures Per cant per * * * * * 12 — \ EURO-DOLLAR DEPOST r - f] r\ / i n M K PURCHASE COVERED - 11 1 i i I 11 1 i i i 1 1 1 1 1 1 1 1 1 1 1 I i 1 M 1 i 1 i A - / > y i 1 1 1 1 1 1 1 1 1 1 1 i A L FAVOR MME fUKCMASE - - DIFFER! I 1 1 1 M I I j S M 11111111111 O 19*9 M J 1970 S O . . R R M W " i i 1 i i 1 i i 1 i i M j S 1971 O M J 1972 S 0 LONDON: COVERED YIELDS ON U.S. DOLLAR FUNDS LOCAL AUTHORITY AND EURO DOLLAR RATES Friday figures 12 EURO-DOLLAR DEPOSIT 9 6 LOCAL AUTHORITY DEPOSIT 3 "COVERED + 0 FAVOR LOCAL AUTHORITY Vvn. + 0 3 6 FAVOR EURO DOLLAR DIFFERENTIAL 1969 1970 1971 1972 9 \ Chart 9A INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per annum l 3-MONTH TREASURY B LL RATES J f U K. LOCAL AUTHOMTY DEPOSITS ' \ \ UNCOVERED / A r VIEW vow i i 1i i 1i i 1i i i i 1ii 1969 •Plotted for comparison purposes 1i i 1 i i 1970 i i 1II 1 M 1971 1i i II 1 i 1 1 1 1 111 1972 Chart 9 8 INTEREST ARBITRAGE: UNITED STATES AND UNITED KINGDOM Friday figures Per cent per a 4 RATE DIFFERENTIAL AND 3-WONTH FORWARD STERLING 2 + 0 2 FORWARD RATE 4 6 8 10 DISCOUNT I 1 i M 1 1 1 1 I I I I I i 1 I I I 11 I 1 1 FAVOR LONDON DIFFERENTIAL 12 4 2 + 0 2 4 6 8 FAVOR NEW YORK 1 I I 1 I I 1 I 1 I I I I M 1 I 1 1 II 1 I I 1 II 10 I I I 11 I 1 I I i I I 1 1I 1 I I D M J 1972 S D 1 Chart 10A 3-MONTH FUNDS INTEREST ARBITRAGE: EURO DOLLAR - GERMAN MARK FRANKFURT INTERBANK LOAN RATE VS. LONDON EURO DOLLAR RATE Wednesday rates Per cei IN TERMS OF DM GERMAN INTERBANK LOAN RATE EURODOLLAR COVERED DIFFERENTIAL No quotation 3-MONTH FUNDS INTEREST ARBITRAGE: EURO-DOLLAR - SWISS FRANC ZURICH DEPOSIT RATE VS. LONDON EURO-DOLLAR RATE Wednesday rates Per cent per annum IN TERMS OF SWISS FRANCS COVERED SWISS DEPOSIT RATE ' i 1 ' ' I < ' I ' DIFFERENTIAL '1 • ' I ' » I ' ' I ' FAVOR ZURICH FAVOR EURO-DOLLAR I I I I I I I I I I I I I I I No quotation 3-MONTH INTEREST ARBITRAGE: UNITED STATES • CANADA I J M | M BILL RATES j 11 CAN. FIN. CO. PAPER UNITED STATES TREASURY BILLS CANADIAN TREASURY BILLS BILL RATE DIFFERENTIAL AND FORWARD CANADIAN DOLLAR FORWARD RATE GROSS SPREAD IN FAVOR OF CANADA COVERED RATE DIFFERENTIALS j TREASURY BILLS FAVOR CANADA PRIME FINANCE PAPER VV FAVOR U S j i l i i i S D 1969 M 1 i i_Li i J 1970 S D M 1 1 1 1-1.1 1 I I I I I I I I I J 1971 S D M J 1972 S D SELECTED SHORT-TERM INTEREST RATES* Pgr CMC per PWNf* UJ. CANADA! 1968 # 1970 3-month treasury bill rates for a# countries except JepenfAverafe rate en bank teens and discounts) and Germanytlnterbank Loan Rate) 1972 T Chart 126 SELECTED SHORT-TERM INTEREST RATES* Per cent per annum EURO DOLLAR - LONDON 10 US. SWITZERLAND 1968 1970 • 3-month treasury bill rate for U.S., Switzerland-3-month deposit rate. # # 3-month rate for U S dollar deposits in London 1972 Chert 13 LONG-TERM BOND YIELDS Weekly figures Per cent per ennum V csr ^ A V Y V / ^ U.S. - NETHERUKNDS . L W W \ \ V SWITZERL V S T— ' 1 1 1 1 1 1 111 I 1I 1 I I 1 I I 1 I I1 1 1 1 1 1 1 1 11 11 11 1 1 1 1 1 L1 I 11 1I L 1 L L 1 L .1 1 1IK. •ERMANY i l 1 i i 1 1 I 1 1 I i i 1 i i 1 i i 1 i i 1 1 1 1 1 1 II US. Monthly figures 1 1 i I I 1 I I VZ\J1 1 1 1 1 II 1 1 1 I I 1 1 1 1 1 1 DOLLAR EURO-BONDS US. CORP. A M BONDS ». DM EURO-BONDS 1968 1969 1970 1971 1972 * New series for Switzerland starts 8 2-68, U.S. Corp. Dollar Euro-Bonds and U S Corp. DM Euro-Bonds starts 12 70. * # New Average yield of all German P A Bonds begins 1-7-69. * * * New series F starts 12-71. HART 14 58=100 INDUSTRIAL STOCK INDEXES o scale 280 UNITED STATES 200 i I i i I iV v i i I i i I i i I i i I i i I i i I i i I i i I i i 1i i 480 360 UNITED KINGDOM I I I I I 1 I I I I I 1 1I 1I I I 11I I I I I 1 I 1I I I I I I I I I 1 I I 1 I I 1I I 240 160 480 360 240 I I 1 I I 1 I I I I M 1969 I I I I I 1 I I I I I I I I 1 I I I 1 I 1I I 1 I I 1 I I 1 I I I 1 I 1970 1971 1972 lapan index of 225 industrial and other stocks traded on Tokyo exchange. Japan index of all industrial and other stocks traded on the first section of the Tokyo Stock Exchange. 160 H. 13 No. 569 Country frit IV. SELECTED CENTRAL BANK DISCOUNT RATES Current Rate In Effect Since Previous Rate In Effect Since 4_n March 2. 1972 4.5 Feb. 5. 1972 S 7S April 6. 1975 6.0 Jan. 13. 1972 3.0 Feb. 25. 1972 4.0 Dec. 23. 1971 EEC.: Belgium France Germany Italy Netherlands Switzerland United Kingdom Canada Japan United States 4.0 Aps-M l March l r n in, 1Q" ? 1972 L S nr-t 4.5 Tan. 6. 1972 14J 1371 3. 75 Sept. 15. 196< 3.0 Julv 10 r 1967 6.0 June 5.0 S e p t . 3. 197J 5.25 Feb. 24. 1971 22. 197!: 4.75 91, 4.25 June 24. 1972 4.75 Anr. 2 9 , 1971 4.50 i w 4.75 PVY. 11 1 c 71 1Q71 11. 1971 IV-2 LATEST FIGURES PLOTTED ON THE CHARTS Chart Panel Series 1A Upper Swiss franc U.K. pound French franc Japanese yen Lower Upper IB Belgian franc Italian lire Canadian dollar German mark Dutch guilder Lower 2A Lower 3A 3B 4 5A Upper Middle Lower 1 Upper 58 ! Lower i. • Rate J u l y 28 Actual rate 1 1 i +1.710 244.84 +2.240 +2.290 +2.240 +0.080' 101.65 +1.550 Actual rate +1.580 German mark Swiss franc U.K. pound Dutch guilder Canadian dollar French franc Japanese yen Upper 2B Date +4.74 +4.47 -3.68 +4.75 +0.24 +0.98 German mark U.S. dollar Swiss franc French franc J u l y 28 Gold price, U.S. dollar per ounce J u l y 28 66.20 Overnight Euro-$ deposits Federal Funds Differential Euro-currencies: Euro DM Euro Swiss Fr. Japan, Unconditional Money U.K., 2-day Local Author. Deps. Canada, Day-to-day Loans France, Day-to-Day Money Germany Call Money Netherlands. Call Money J u l y 26 H 5.18 4.54 +0.64 " n# fi. n.a. " " " J u l y 28 " July July July July 21 14 26 21 jsl? 4 J u l y 14 -0.75 -0.63 4.25 7.50 3.45 3.50 gis 0.69 IV - 3 Chart Panel 6A Date Series Euro-$ 7-day Rate Euro-$ 1-month Rate 6B 7A Upper J u l v 28 J u l y 21 J u l y 28 Euro-$ 3-month Rate 5.69 6.19 Euro-$ 3-month Deposits Lower Differential Upper Euro-S 3-month Deposits J u l v 26 +0.69 5.44 6.80 U.S. Certificate of Deposits (Adj.) 5.00 Differential: on Adj. Euro-S Deposits +1.80 on Unadj. Euro-S Deposits 8A Upper Euro-$ 3-month Deposits +0.44 J u l y 14 Hire Purchase Deposits (covered) 8B Lower Differential Upper Euro-S 3-month Deposits -1.46 5.63 4.36 Differential U.S. Treasury Bill rate 9A -1.27 J u l y 28 U.K. Treasury Bill rate Local Authority Deposit (uncovered) 9B Upper Spread (+= favor London) 3-month Forward Pound Lower 5.63 4.17 Local Authority Deposits (covered) Lower 5.44 4.75 Euro-$ 3-month Deposits (Adj.) Lower 5.38 5.75r 5.75 Euro-S 6-month Rate U.S. Certificate of Deposits 7B Rate 3.80 5.69 J u l y 14 8.06 J u l y 28 +1.89 •« -3.43 •« -1.54 Net Incentive (+= favor London) | IV-4 Chart Paie' IDA Upper | Series Dale £uro-$ Deposits (cowed) J u l y 26 Geiean interbank Loan rale IDE Lower , Differential Upper • Eum-S Deposits (covered) 11 Upper | +3.73 1.16 2.00c Differential Canadian Finance Paper 4-0.86 J u l y 28 U.S. Treasury Bill rale I Canadian Treasury Bill m e I U.S. Prime Finance paper (not plotted) Second 12A 0.77 4.50 Swiss Deposit rate Lowe: Stile 5.00 3.80 3.38 4.75 Bill rate differential -0.42 Forward Canadian dollar +0.12 Third Net incentive on bills -0.30 Bottom Net incentive on Finance Paper +0.33 Upper U.K. Treasury Bill rate 5.69 U.S. Treasury Bill rate Lower J u l y 26 4.50 Japanese Average rate Mav 7.191 Canadian Treasury Bill rate U.S. Treasury Bill rate 126 3.80 German Interbank Loan rate J u l y 28 „ Euro-S Deposits Swiss 3-month Deposit rate 3. 38 3.80 5.69 ii U.S. Treasury Bill rate " 2.00 3.80 f IV-5 CM 13 Pan* Upper Series * * * * * M y 26 7 11 Untied Slates July 26 5,38 Jttlv 21 4,96 * Gemany United Kingdom Lower U.S. Corp. Dollar Eurobonds U.S. Corp. DM Euro-bonds . Series I July 7 8,07 July 21 9,50 June H U.S. Corp. Aaa bonds 14 Upper Switzerland Germany Middle 8,19 6,88 7,23 July 21 437.8 H 300,4 United States July 28 244.62 United Kingdom July 21 282,44 July 20 253.90 July 22 657.06 July 28 244.62 Canada Lower 7,00 6,75 Cauda Switzerland Middle Mate Me July 7 July 14 •• Japan United States * New - Average yield of ALL German Public Authorities bonds made as of banking key days. ** Beginning week ended September 5, 1970, the Japanese index plotted is that of all industrial and other stocks on the First Section of the Tokyo Stock Exchange.
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